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Law & compliance · Ben Sloman

2026 California HOA Legislation — May CACM Report

A board-focused review of California requirements, legislative changes, deadlines, risk, reserves, inspections, and the practical governance steps associations should consider.

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California Communities actively participates in both the CACM and CAI legislative committees, monitoring every bill that affects homeowner associations in real time. The following is our analysis of the May 11, 2026 CACM Bill Tracking Report — the most current legislative snapshot available for California HOA boards in Oakland, Alameda, San Francisco, and across the state. Bookmark this page and check back as these bills advance.

HIGH PRIORITY BILLS — Direct HOA Impact

AB 739 — Managing Agent Fee Review (HIGH PRIORITY)

Author: Assembly member from District 60 | Status: Referred to Senate Committees on Housing and Judiciary (May 6, 2026) | CACM Position: Neutral with latest amendments

This bill requires HOA boards to conduct an annual review of fees charged by their managing agent. Currently, boards are only required to review financial documents monthly — this bill adds a specific annual fee review requirement. For Bay Area HOA boards evaluating their management company's value, this bill formalizes what good governance already demands. California Communities supports full fee transparency and welcomes this kind of accountability.

AB 1184 — HOA Emergency Rule Change Notice Requirements (HIGH PRIORITY)

Author: Patterson | Status: Referred to Senate Committees on Housing and Judiciary (May 6, 2026)

This bill adds transparency requirements to HOA emergency rule changes. Under current law, boards can make emergency rule changes without the standard 28-day notice if there's an imminent health/safety threat or risk of substantial economic loss. AB 1184 would require that the emergency notice include the full text of the rule change, its purpose and effect, and an expiration date. This is a meaningful governance improvement — boards that have used emergency rule authority broadly should review their practices now.

COMMON INTEREST DEVELOPMENT BILLS — What Every Board Must Track

AB 1684 — Cooling Systems in HOAs

Author: Ward | Status: Passed to Senate (May 5, 2026) | CAI Position: Opposed, seeking amendments

AB 1684 would void any HOA governing document provision that prohibits or restricts a member from installing, upgrading, or using a cooling system in their separate interest — including portable AC units, window units, swamp coolers, heat pumps, and cooling fans. CAI initially opposed this bill but the author accepted amendments allowing associations to require members to be responsible for maintenance and repairs of their own cooling equipment. For Bay Area HOAs — particularly high-rises in San Francisco and Oakland — this will require updating architectural guidelines and enforcement policies.

AB 1892 — Common Area Utility Service Restoration (CAI Sponsored)

Author: Davies (R) | Status: Third Reading, Calendar May 11, 2026

This CAI-sponsored bill clarifies HOA responsibility for restoring interrupted utility services (gas, heat, water, electricity). Current law makes associations responsible for repairs when service interruption begins in the common area — even if it extends into another area. This bill refines the trigger language to "when an interruption of service begins in the common area." The bill also updates election-by-acclamation notice requirements, changing the initial notice deadline from 90 days to 30 days before nominations, with a reminder notice required at least 10 days before the nomination deadline. California Communities supports this bill.

AB 1903 — Construction Defect Law Overhaul (CRITICAL — CACM/CAI Opposing)

Author: Wicks (D) | Status: Re-referred to Appropriations (April 27, 2026), Hearing May 13, 2026 | Sponsored by: CBIA | CACM/CAI Position: Requesting amendments

This is one of the most consequential bills in the report for HOA communities in new construction. AB 1903 would completely rewrite California's construction defect law for condominium projects and townhouses built after January 1, 2027. Key changes: it requires actual proof of damage (eliminating the current standard), allows builders to create "certified buildings" using their own inspectors — and once certified, the building cannot be challenged. Builders could establish their own post-construction claims process, and owners who don't allow inspection within 7 days are deemed to have released the builder from liability. CACM, CAI, and CAOC are all requesting amendments. If you own a unit in a new-construction community, or your HOA is managing a recently built development, this bill deserves close attention.

AB 2050 — Reserve Account Funding (CAI Sponsored — California Communities Supports)

Author: Caloza (D) | Status: Third Reading, Calendar May 11, 2026

This CAI-sponsored bill is a meaningful step toward better-funded California HOAs. Effective January 1, 2032, it would require associations to fund their reserve accounts at a minimum level — calculated to prevent the projected reserve balance from falling below zero over the following 30 years. Current law only requires a visual inspection and reserve study; this bill adds a hard floor on annual contributions. Underfunded reserves are the most common cause of special assessments. California Communities strongly supports AB 2050.

AB 2579 — AB 130 Fine Cap Cleanup (CAI/CACM Supported)

Author: Petrie-Norris (D) | Status: Ordered to Third Reading, referred to Appropriations (April 30, 2026), Hearing May 13, 2026

AB 130 (2025) capped HOA fines at $100 per violation for most violations. AB 2579 is the cleanup bill — it carves out exceptions for violations that might result in adverse health or safety impacts, or for violations on a list to be developed and published by the Department of Real Estate by January 1, 2028. This gives associations a path to maintain meaningful enforcement against serious violations while complying with the fine caps. California Communities is closely monitoring this bill as it directly affects how we manage enforcement for our Oakland, Alameda, and San Francisco communities.

AB 2692 — Declaration Reinstatement (Los Angeles County — Urgency Bill)

Status: Passed Assembly 66-0 (May 7, 2026) — Urgency Clause Adopted

This urgency bill establishes a process for reinstating HOA declarations that have terminated by expiration of their initial term — applicable only to Los Angeles County and expiring January 1, 2028. Not directly relevant to Bay Area communities, but it signals legislative willingness to use urgency measures to address HOA governance gaps quickly.

INSURANCE BILLS — Bay Area HOAs Take Note

AB 69 — FAIR Plan Policy Notices

Author: Calderon | Status: In Senate Insurance Committee (September 2025 amendments)

This bill would require the California FAIR Plan to notify all policyholders annually of their coverage options — including at initial policy issuance and each renewal. For Bay Area HOAs in wildfire risk zones that have been forced onto the FAIR Plan, this improves transparency around your coverage alternatives. Many communities don't realize they may have options.

AB 1680 — FAIR Plan Civil Penalties

Author: Calderon | Status: In Appropriations Suspense File (May 2026)

AB 1680 strengthens the Insurance Commissioner's enforcement authority over the FAIR Plan — allowing fines up to $20,000 for failure to take corrective action within agreed timeframes and up to $20,000 per willful violation. This is part of California's broader effort to improve FAIR Plan accountability as more communities across the state, including in the Bay Area, rely on it as a last-resort insurer.

HOUSING & DEVELOPMENT BILLS — Context for HOA Communities

AB 698 — Real Property Transfer Tax Transparency

Status: In Senate (June 9, 2025)

Requires cities to post an analysis of how any proposed real property transfer tax affects affordable housing production before adoption. Relevant for Oakland and San Francisco HOA communities where transfer tax changes affect unit sales and resale values.

SB 222 — Heat Pump Asynchronous Inspections

Status: Passed Senate, held at Assembly Desk | CAI Position: Opposed

SB 222 requires cities to offer asynchronous inspections (where inspector and contractor don't need to be simultaneously present) for residential heat pump water heater and HVAC installations beginning July 1, 2027. CAI opposes this bill. For HOA communities managing building-wide HVAC or water heater replacements, this could affect your project timelines and inspection processes.

AB 1751 — Missing Middle Townhome Ownership Act

Status: In Appropriations Suspense File (May 6, 2026)

Establishes a ministerial approval process for townhome housing development projects meeting specific density, size, and planning criteria — including lots as small as 600 square feet. Relevant for Bay Area developers and potentially for HOAs that will manage these new townhome communities once built.

OTHER BILLS WORTH NOTING

  • AB 1819 (Sanchez) — Requires AED devices in buildings serving 50+ adults age 55 and older. Currently in Appropriations Suspense File. Relevant for senior HOA communities in the Bay Area.

  • AB 1827 — Increases small claims court jurisdiction for natural persons from $12,500 to $15,000. Relevant for HOA assessment collection actions.

  • AB 1803 (Lowenthal) — Anti-hate speech training required as part of existing sexual harassment training for employers with 5+ employees. Applies to HOA management companies.

  • AB 2035 (Dixon) — Lowers CC&R amendment voting threshold to 37% for senior citizen housing developments where declarations are 35+ years old. Sponsored by Laguna Woods.

  • AB 2439 (Johnson) — ADU rule: prohibits local agencies from banning ADUs solely because lots are served by private sewage disposal systems. Now on Assembly Consent Calendar.

  • AB 2748 (Quirk-Silva) — Exempts new affordable housing developments from 2025 California Green Building Standards EV charging requirements through December 31, 2035.

  • SB 911 — Adds protections for mobilehome and RV park residents from transit-oriented development displacement. Referred to Assembly Housing Committee (May 4, 2026).

  • SB 677 (Transit-Oriented Housing) and SB 722 (Transit-Oriented Housing Excluded Parcels) — Both affect housing development density near transit stops. Relevant background for Bay Area HOAs near BART and Caltrain corridors.

Stay Ahead of California HOA Legislation

California's legislative calendar moves fast — and the bills above are active right now, with several heading to final votes in May and June 2026. California Communities monitors every bill on CACM's tracker and translates its implications for our communities in Oakland, Alameda, and San Francisco. If you have questions about how any of these bills affect your HOA, call us at 415-489-0632 or email info@californiacommunities.biz. We're happy to walk your board through what's coming.

A note for California HOA boards

Apply this information to your governing documents, finances, reserve plan, property conditions, insurance requirements, and current California law. Use qualified legal, financial, engineering, reserve, or insurance professionals when the decision calls for specialist advice.

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